According to the study ‘The European Road Freight Rate Development Benchmark’ published by the World Transport Organization (IRU) with Upply and Transport Intelligence consultancies, the transport cost rate is at an all time high. It is 7.5% higher when compared to the situation a year ago and has been on the rise for four consecutive quarters.
Various factors are responsible for the increase in prices of #roadtransport:
- Rising fuel prices.
- Driver shortages. In addition to the significant shortage at the end of 2021, more than 166,000 truck drivers from Ukraine, Belarus and Russia who worked in Europe could have left their jobs due to the conflict. This will, according to the study, «increase upward pressure on wages», which will contribute to increasing the bill for companies in the sector.
- Truck transport prices and availability. This is reflected in the lack of vehicle components and the difficulty in getting new trucks. The lack of availability makes one or two year old trucks almost as expensive as new ones.
- Supply and capacity disruptions and delays.
- The crisis in Ukraine will have medium- and long-term effects that we do not yet know about, but which are sure to affect the sector.
- Regulatory change. Road transport in Europe is going through a period of major changes with the EU’s new Mobility Package.
- Dynamic demand with the reopening of the post-Covid economies.
There are a few steps carriers can take right now:
- Make sure you have adequate insurance. Freight carriers are required to have both liability and cargo insurance policies.
- Find a reliable claims handling partner. Partnering with a reputed claims handling agency will allow you to access the best options with regard to recoveries.
- Mitigate risks by working with expert marine surveyors.
- In case of loss, look for the best cargo salvage buyer. Salvage the damaged product by selling the salvage.
➡️Download the full report: https://bit.ly/3O4zdz4
